Trending Financial News 25 February 2020
Commonwealth Bank will pay your mortgage if your spouse dies
Commonwealth Bank is Australia’s biggest home loan provider.
Commonwealth Bank yesterday announced a new complimentary life-insurance type policy for home loan borrowers.
Called Home Loan Compassionate Care, CommBank will provide protection to Owner-Occupied homeowners whose spouse or dependant passes away (or is diagnosed with a terminal illness) by paying their loan repayments for “around 12 months.”
“When the unthinkable happens we’ll support our customers by making their home loan repayments for around 12 months at no cost,” said Angus Sullivan, CBA senior executive.
The new cover will be provided at no cost said Mr Sullivan, to thank customers for their loyalty.
CommBank’s Home Loan Compassionate Care cover is available for eligible Owner-Occupied home loan customers aged between 18 and 59 years. There are exclusions and limitations.
Go directly to Commonwealth Bank home loan rates and fees information at InfoChoice.
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Can you repay your home loan if your husband/wife dies?
New research from Commonwealth Bank reveals one third of Australians would only be able to cover their home loan repayments for up to six months if their spouse or dependant passed away or was diagnosed with a terminal illness.
Ten per cent of homeowners would only be able to cover mortgage repayments for one month or less based on their current income and savings.
The research also revealed that over half of Australian homeowners have not had a conversation with their spouse or dependant(s) about how they would meet ongoing home loan repayments if they passed away or were diagnosed with a terminal illness.
Are you ‘in the dark’ about your home loan?
40 per cent of women and 29 per cent of men say they are not ‘fully across’ the details of their monthly home loan repayments.
Furthermore, while nearly half of all respondents said they manage the monthly home loan repayments, a third are not fully across the details of their home loan, with women (40 per cent) more in the dark than men (29 per cent).
If you know your current home loan rate, fees and repayments, you can compare loans at InfoChoice and potentially save thousands over the life of a home loan.
Compare home loans from Australia’s banks and other lenders at InfoChoice.
UniBank has a Special on variable loans
UniBank has a special rate offer for members of 2.80 per cent pa – fixed for 12 months (comparison rate 3.29 per cent pa). The special interest rate is a low competitive rate which will not change throughout the 12-month period. However, unlike many other fixed rate home loan products, the UniBank Classic Home Loan Special allows unlimited extra repayments and fee-free redraw.
Go directly to UniBank home loan rates and fees information at InfoChoice.
Compare UniBank home loan rates with other lenders at InfoChoice.
New home construction set for long slow recovery
The number of homes that commenced construction in Australia fell from 225,061 in 2018 to 174,770 in 2019 said the Housing Industry Association today.
This is the sharpest contraction in home building since the period following the introduction of the GST 20 years ago.
The HIA said “the cycle had just about run its course and the overall housing market reached a turning point at the end of 2019, buoyed by interest rate cuts and house price growth.”
“The next upswing in new home building will not see a return to the hive activity of the boom years, 2014 to 2018. These years set a record that will not be eclipsed in the foreseeable future. Population growth has pulled back from previous heady days but has nevertheless remained relatively strong, just shy of 400,000 people per annum. This steadier rate of population growth along with much of the underbuild, now largely worked down, means the pressure for new builds won’t reach the same fever pitch.
Rate check for a better rate, or $1,000!
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If we can’t find you a better variable, owner occupied (P&I) home loan rate, InfoChoice will pay you $1,000 (Ts and Cs apply).
You may get a call from a friendly consultant from MyLocalBroker who can help you find a great home loan rate that could save you thousands of dollars over the life of your mortgage.
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Australia’s new $100 note revealed
The Reserve Bank of Australia has released a new $100 banknote, the final note to be redesigned.
The new note, like the current note, features Sir John Monash and Dame Nellie Melba.
“Australians should feel proud of our banknotes,” said RBA Governor Dr Philip Lowe.
“They are innovative and contain world-leading security features that keep the banknotes secure.”
Existing $100 banknotes remain legal tender and can continue to be used said the RBA.
Banks accounts with no monthly fees
There is no need to pay fees for an everyday transaction bank account. There are plenty of accounts that have no fees, great features and apps and ways to pay.
NAB’s Classic Banking account has no monthly fees, no ATM fees, no transaction fees and comes with a Eftpos/Visa Debit card with Tap and pay and NAB Pay for Android.
Go directly to NAB Classic Banking account rates and fees information at InfoChoice.
Read more about the best bank accounts in February at InfoChoice.
Review of Xinja Stash account
Xinja Bank is a new Australian online neobank. Xinja Bank launched the Stash account on 15 January, with an ongoing interest rate of 2.25% pa. There is no base rate and bonus rate rules with a Xinja Bank Stash account.
Go directly to Xinja Bank Stash account interest rates and fees information at InfoChoice.
Compare Xinja Bank Stash account with other high interest savings accounts at InfoChoice.
Read InfoChoice’s Review of Xinja Bank Stash account.